SB 1137 creates a new above-the-line tax deduction for qualified tax filers who take the standard deduction for unreimbursed medical expenses. The deduction is limited to $5,000 of actual expenses over 4% of their AGI for fliers making up to 300% of the Federal Poverty Level, expanding access to tax relief for families facing high out-of-pocket medical costs, and ensuring financial hardship due to health needs doesn’t go unrecognized
“For many California families, one illness or ongoing medical condition can seriously threaten their finances,” Sen. Valladares said. “This bill recognizes that medical expenses are not discretionary spending, they are a necessary cost of living.”
Read the bill language HERE.